Water productivity and economic feasibility of drip irrigation system investment in tomato cultivation: Case of northeastern Tunisia

Abstract Tunisia is characterized by water scarcity, growing water demand and considerable waste of this resource especially in the agricultural sector. To cope with this situation and enhance water productivity, appropriate utilization of advanced irrigation methods such as drip irrigation is highly needed. Hence, this research aims to evaluate the profitability of drip irrigation systems compared with surface irrigation systems at the perimeter of Echraf, which is located in the northeastern of Tunisia. Primary data were collected from 25 adopters of the Drip Irrigation System and 13 non‐adopters. The results of the partial budget analysis revealed that the average total cost for adopters was higher than that for non‐adopters. However, the net margin was higher for adopters than for non‐adopters. This is due to the greater increase in gross revenue for adopters than for non‐adopters. Additionally, drip irrigation resulted in more efficient water use and water values than did the surface irrigation system. Economic profitability analysis via the benefit cost ratio and net present value tools revealed that the drip irrigation system is profitable. The benefit cost ratio is equal to 1.65, and the net present value is approximately 2938 Tunisian National Dinar. Finally, the sensitivity analysis reveals the extent to which profitability is sensitive to the scenarios of subsidy levels.